Thailand’s central bank says its monetary policy remains “very, very accommodative” as it works to support an economy facing weak domestic demand and high household debt.
Bank of Thailand Assistant Governor Don Nakornthab said the policy rate, currently at 1.00%, remains appropriate for supporting the economic recovery. The central bank has kept the rate unchanged for three consecutive meetings after cutting it six times by a combined 1.5 percentage points between October 2024 and February 2026.
Don said the central bank’s June growth forecasts remain unchanged, with Thailand’s economy expected to expand 2.3% in 2026 and 1.8% in 2027. He expects growth to exceed 3% in the third quarter before slowing to around 2% in the final quarter of this year.
The official said the central bank is not required to follow the U.S. Federal Reserve’s recent rate increase, noting that Thailand’s economic conditions are different. He also said inflation could average around 2% this year, below the Bank of Thailand’s earlier 2.8% forecast.
Thailand’s economy grew 1.9% year-on-year in the second quarter, slowing from 2.8% in the previous quarter. Household debt and subdued domestic consumption remain challenges, while exports and technology-related investment have provided support.
The Thai baht has weakened about 5.7% against the U.S. dollar this year. Don said the weaker currency could benefit exports and the broader economy as long as its movements remain orderly and do not become excessively volatile.
The Bank of Thailand’s next monetary policy review is scheduled for October 28, 2026, when it is expected to provide updated economic forecasts.
